Variable Interest Entities

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

6.    VARIABLE INTEREST ENTITIES

Consolidated VIEs

We consolidate a VIE when we have a variable interest in an entity for which we are the primary beneficiary. As of September 30, 2024, the significant consolidated VIEs included:

•DGD, a joint venture with a subsidiary of Darling Ingredients Inc. that owns and operates two plants that process waste and renewable feedstocks (predominantly animal fats, used cooking oils, vegetable oils, and inedible distillers corn oils) into renewable diesel and renewable naphtha; and

•Central Mexico Terminals, a collective group of three subsidiaries of Infraestructura Energetica Nova, S.A.P.I. de C.V. (IEnova), which is a Mexican company and indirect subsidiary of Sempra Energy, a U.S. public company. We have terminaling agreements with Central Mexico Terminals that represent variable interests. We do not have an ownership interest in Central Mexico Terminals.

The assets of the consolidated VIEs can only be used to settle their own obligations and the creditors of the consolidated VIEs have no recourse to our other assets. We generally do not provide financial guarantees to the VIEs. Although we have provided credit facilities to some of the VIEs in support of their construction or acquisition activities, these transactions are eliminated in consolidation. Our financial position, results of operations, and cash flows are impacted by the performance of the consolidated VIEs, net of intercompany eliminations, to the extent of our ownership interest in each VIE.

The following tables present summarized balance sheet information for the significant assets and liabilities of the consolidated VIEs, which are included in our balance sheets (in millions):

	DGD		Central Mexico Terminals		Other		Total
September 30, 2024
Assets
Cash and cash equivalents	$	196	$	—	$	22	$	218
Other current assets	1,453		9		38		1,500
Property, plant, and equipment, net	3,823		651		67		4,541
Liabilities
Current liabilities, including current portion of debt and finance lease obligations	$	369	$	352	$	4	$	725
Debt and finance lease obligations, less current portion	649		—		—		649

	DGD		Central Mexico Terminals		Other		Total
December 31, 2023
Assets
Cash and cash equivalents	$	237	$	—	$	23	$	260
Other current assets	1,520		11		46		1,577
Property, plant, and equipment, net	3,772		665		75		4,512
Liabilities
Current liabilities, including current portion of debt and finance lease obligations	$	616	$	808	$	19	$	1,443
Debt and finance lease obligations, less current portion	669		—		—		669

Nonconsolidated VIEs

We hold variable interests in VIEs that have not been consolidated because we are not considered the primary beneficiary. These nonconsolidated VIEs are not material to our financial position or results of operations and are accounted for as equity investments.